The Social Life of
Information
Chapter 6 – Innovating Organization,
Husbanding Knowledge
William H. Bowers – whb108@psu.edu
Knowledge Conundrum
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Difficulty in moving knowledge
Impossible to stop knowledge flow
William H. Bowers – whb108@psu.edu
Fumbling the Future

Knowledge can be
– ‘Sticky’
– ‘Leaky’

Xerox PARC
– First GUI with windows
– Mouse
– Engineers, scientists and managers could not
agree on value of these developments
– Lost to Apple, Microsoft
William H. Bowers – whb108@psu.edu
United in Theory, Divided in
Practice
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Organizational theory assumes
homogenous firms
1930’s – theory that organizations
promote ‘melting pot’
1950’s – ‘Organization man’
Work identity is always local
Local knowledge reinforces divisions
William H. Bowers – whb108@psu.edu
Loosening Ties
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Lockheed’s skunk works
Xerox PARC
GM’s Saturn division
Intrapreneurship
William H. Bowers – whb108@psu.edu
Becoming Untied
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Invention produces new ideas
Innovation implements inventions
These can become disconnected
Corporations do not make great leaps
William H. Bowers – whb108@psu.edu
Computer Networks

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PC was initially rejected by Xerox, Intel
Networks of practice
– Internal
– External
– Promotes knowledge leakage
William H. Bowers – whb108@psu.edu
Exchanging Complements

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Xerography (copiers) rejected by IBM
and AB Dick
Knowledge of GUI flowed from PARC
to Apple
Apple struggled for 5 years (1979 –
1984) to make it commercially viable
Internal struggles at Apple
William H. Bowers – whb108@psu.edu
Exchanging Complements

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Journey from invention to innovation is
difficult
Requires
–
–
–
–
–

Hard work
Tough decisions
Organizational commitment
Leadership
Trust
Invention requires complementary systems
William H. Bowers – whb108@psu.edu
Clustering
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Matrix of organizations and networks
of practice
Reflects loose matrix (Silicon Valley)
Connects internal and external
structures
William H. Bowers – whb108@psu.edu
Clustering

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William H. Bowers – whb108@psu.edu
Vertical lines are
firms
Horizontal are
communities of
practice
Clustered Ecologies
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Geographical clustering of industries
Firms are no longer isolated
“Mysteries of the trade” become
common knowledge
Knowledge flows in and out
William H. Bowers – whb108@psu.edu
Clustered Ecologies
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Labor pools develop
Subsidiary industries develop
Regional advantages accrue
Feedback loops
Social forces co-operate with economic
ones
William H. Bowers – whb108@psu.edu
Revivals

Death of distance
– Physical communities still thrive
– Complementary organization spring up
– Universities and colleges feed
organizations
– “Knowable community”
– IT is not dispersing these clusters
William H. Bowers – whb108@psu.edu
Revivals

Death of the firm
– Organization flattening
– Self-organization will prevail
– Formal organizations hinder monopolies
– Organizations can afford R & D
– The firms ‘husbands’ resources
William H. Bowers – whb108@psu.edu
Questions & Discussion
William H. Bowers – whb108@psu.edu